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NET INCOME (LOSS) PER SHARE
 6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of shares of common stock, adjusted for any dilutive effect of potential common stock. Potential common stock, computed using the treasury stock method, includes stock options, RSUs, RSAs and ESPP.

The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share (in thousands, except per share amounts):

 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2019
 
2018
 
2019
 
2018
Numerator:
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(8,620
)
 
$
(7,758
)
 
$
(19,636
)
 
$
62,125

Denominator:
 
 
 
 
 
 
 
 
Weighted-average common stock outstanding, basic
 
31,578

 
30,527

 
31,335

 
30,116

  Dilutive effect of potential common shares:
 
 
 
 
 
 
 
 
  Stock options, RSUs, RSA and ESPP
 
—

 
—

 
—

 
958

Total shares, diluted
 
31,578

 
30,527

 
31,335

 
31,074

Basic net income (loss) per share
 
$
(0.27
)
 
$
(0.25
)
 
$
(0.63
)
 
$
2.06

Diluted net income (loss) per share
 
$
(0.27
)
 
$
(0.25
)
 
$
(0.63
)
 
$
2.00



The Company includes the underlying market condition-based stock options in the calculation of diluted earnings per share if the performance condition has been satisfied as of the end of the reporting period and excludes such options if the performance condition has not been met.

For the six months ended June 30, 2018, standard stock options to purchase approximately 371,000 shares of common stock, with exercise prices greater than the average fair market value of the Company’s stock of $11.81 per share, were not included in the calculation because the effect would have been anti-dilutive.

As of June 30, 2019 and 2018, the Company had securities outstanding that could potentially dilute basic earnings per share in the future, but these were excluded from the computation of diluted net loss per share for the three and six months ended June 30, 2019 and the three months ended June 30, 2018, since their effect would have been anti-dilutive. These outstanding securities consisted of the following (in thousands):

 
 
June 30
 
 
2019
 
2018
Stock options
 
2,035
 
2,311

RSUs
 
753

 
1,205

RSAs
 
80

 
32